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Market Channel Analysis of Ornamental Plants using Clustering Procedures

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  • Pandit, Mahesh
  • Paudel, Krishna P.
  • Hinson, Roger A.

Abstract

Market channel alternatives that include garden centers, landscapers, mass merchandisers and re-wholesalers have contributed to the growth of ornamental crops sales in the United States (U. S.). The homogenous subpopulation of the U.S. nursery producer was clustered using mixture of export method and found that there exist four homogenous group of Nursery Producer. The impact of growers’ business characteristics on shares of sales to these channels by firm size was estimated using multivariate fractional regression and nonparametric model. Important explanatory variables were regions of the U.S., sales of plant groups, kinds of contract sales, and promotional expenses, and their effect varies by cluster. We also found that in some cases nonparametric estimation procedure is better than parametric estimates.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida with number 143067.

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Date of creation: 19 Jan 2013
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Handle: RePEc:ags:saea13:143067

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Keywords: garden centers; landscapers; market channels; mass merchandisers; ornamental plants; re-wholesalers; multivariate fractional regression model; nonparametric; Environmental Economics and Policy; Farm Management; M31; L14;

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  1. Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
  2. Cheng Hsiao & Qi Li & Jeff Racine, 2006. "A Consistent Model Specification Test with Mixed Discrete and Continuous Data," IEPR Working Papers 06.47, Institute of Economic Policy Research (IEPR).
  3. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
  4. Esmeralda A. Ramalho & Joaquim J.S. Ramalho & José M.R. Murteira, 2011. "Alternative Estimating And Testing Empirical Strategies For Fractional Regression Models," Journal of Economic Surveys, Wiley Blackwell, vol. 25(1), pages 19-68, 02.
  5. Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
  6. José M.R. Murteira & Joaquim J.S. Ramalho, 2013. "Regression Analysis of Multivariate Fractional Data," CEFAGE-UE Working Papers 2013_05, University of Evora, CEFAGE-UE (Portugal).
  7. Krishna Paudel & Mahesh Pandit & Michael Dunn, 2013. "Using spectral analysis and multinomial logit regression to explain households’ choice patterns," Empirical Economics, Springer, vol. 44(2), pages 739-760, April.
  8. Hinson, Roger A. & Paudel, Krishna P. & Velastegui, Marco, 2012. "Understanding Ornamental Plant Market Shares to Rewholesaler, Retailer, and Landscaper Channels," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(02), May.
  9. Pandit, Mahesh & Paudel, Krishna P. & Hinson, Roger A., 2012. "Intensity of Integrated Pest Management (IPM) Practices Adoption by U.S. Nursery Crop Producers," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124942, Agricultural and Applied Economics Association.
  10. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
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